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Market ends 3-day slump; Megaworld, Jollibee climb

Stocks rose Tuesday to snap a three-day slump, boosted by a government report that remittances climbed 9.3 percent in September from a year ago.

The Philippine Stock Exchange Index added 41.09 points, or 0.6 percent, to 6,959.14 on a value turnover of P10.2 billion. Gainers beat losers, 126 to 98, with 41 issues unchanged.

Remittances increased 9.3 percent to $2.601 billion in September, up from $2.379 billion a year ago and $2.483 billion in August, the fastest growth in 29 months, as the economies hosting overseas Filipino workers gradually recovered from the impact of the coronavirus pandemic.

Megaworld Corp., the biggest lessor of office spaces, advanced 5.3 percent to P3.79, while GT Capital Holdings Inc. of the Ty Group climbed 3.8 percent to P545.

Jollibee Foods Corp., the largest fast-food chain, rose 3.3 percent to P196.50, while BDO Unibank Inc., the biggest lender in terms of assets, increased 2.9 percent to P95.30.

Meanwhile, most Asian markets rose Tuesday as hopes the world could begin to return to normal were boosted by news that another vaccine candidate appeared to be effective against the coronavirus.

However, while airlines led the gains, a broad rally across equities was tempered by investors moving out of tech firms and others that have benefited during the pandemic.

Surging infections across the US and Europe and concerns that Washington lawmakers are unlikely to pass any big stimulus package before the end of the year were also causing nervousness.

The mood among dealers has been upbeat this month after Joe Biden’s US election win paved the way for a little more certainty on the world stage and pharma giants Pfizer and BioNTech announced their virus vaccine had been 90 percent effective.

The news fanned hopes the global economy could soon begin to get back on track.

On Monday that outlook was given another boost when Moderna said early results showed its candidate was 94.5 percent effective.

The United States’ top infectious disease scientist Anthony Fauci hailed the announcement as “stunningly impressive” and “really a spectacular result.”

All three main indexes on Wall Street rallied, with the Dow and S&P 500 hitting new record highs.

And after a stuttering start, Asia battled to extend the advances following a healthy run-up Monday.

Tokyo, Hong Kong, Sydney, Singapore, Wellington, Taipei, Mumbai and Jakarta were all in positive territory but Shanghai and Seoul edged down.

“We might be transitioning from a defensive bull market to a more cyclically offensive one but more clarity is required in terms of when social mobility will normalise,” said Chris Iggo at AXA Investment Managers.

“That isn’t clear yet. The euphoria created by the presidential election result and the vaccine announcement will give way to a more sober analysis of how long and smooth the road to recovery will be.”

Firms that have been battered by the virus were enjoying a healthy run-up.

Cathay Pacific surged more than seven percent in Hong Kong and Australia’s Qantas piled on more than one percent, while Air China and Singapore Airlines each jumped more than four percent. With AFP

Topics: Stock Market , Philippine Stock Market , PSE , Philippine Stock Exchange Index , PSEi , global stock market , Megaworld Corp. , Jollibee Foods Corp.
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